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Sydnee Gatewood
Sydnee Gatewood
Articles (1763) 

Howard Marks Releases Memo: ‘Latest Update’

Renowned investor discusses the coronavirus crisis

March 26, 2020 | About:

In one of his famous “memos,” which was released last week, Howard Marks (Trades, Portfolio), co-chairman of multibillion-dollar asset management firm Oaktree Capital, shared his updated thoughts on the coronavirus outbreak.

The paper, titled “Latest Update,” starts with a discussion of flattening the curve of the Covid-19 virus’ spread, which he said has been described as “exponential.”

“Most people use this word without understanding precisely what it means,” he continued. “In short, exponential growth is the real-world version of what people in our business refer to as compounding. In other words, there’s a growth percentage, and the parameter in question increases by that percentage every period. Thus the rate of growth is constant, but the magnitude of the increase grows in each period. For years, we’ve talked about things on the Internet ‘going viral.’ This is what exponential growth means.”

Marks then continues on to discuss the potential short- and long-term effects the virus will have, as well as the response from the market and the government.

Read Marks’ full memo here.

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About the author:

Sydnee Gatewood
I am the editorial director at GuruFocus. I have a BA in journalism and a MA in mass communications from Texas Tech University. I have lived in Texas most of my life, but also have roots in New Mexico and Colorado. Follow me on Twitter! @gurusydneerg

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